CIMA F3 Question Answer
A company is currently all-equity financed.
The directors are planning to raise long term debt to finance a new project.
The debt:equity ratio after the bond issue would be 40:60 based on estimated market values.
According to Modigliani and Miller's Theory of Capital Structure without tax, the company's cost of equity would:
CIMA F3 Summary
- Vendor: CIMA
- Product: F3
- Update on: Jul 29, 2025
- Questions: 435
